Eagle Real Estate JV To Spend up to $1.5B on West Coast Multifamily Assets
Eagle Real Estate Partners, LLC has formed a joint venture with private equity firm TriPost Capital Partners, LLC, which will focus on the housing sector.
Particularly, TriPost will contribute more than $50 million in GP co-investment capital, which backs Eagle to purchase as much as $1.5 billion in West Coast multifamily assets and California, along with other "select" regions.
The $1.5 billion investment will also target affordable and workforce housing. Affordable transformations are also expected to be a big part of the strategy.
This is exemplified by the two acquisitions that the JV has made so far. For one, the two partners paid $162.5 million for active adult communities Hendrix and Hadley Apartments in Escondido, California, which span 551 units. The other is Hills at Hacienda Heights, a 350 multifamily community in Los Angeles County, coming in at a cost of $107 million. For both properties, the JV is planning to convert each market-rate property into an affordable transformation.
"TriPost's programmatic commitment will enable EREP to continue to execute on the full breadth of its multifamily strategy across the West Coast and beyond," Shahny Lutfeali, managing partner and co-founder of Eagle, said in a statement.
"We see tremendous opportunity in the long-term fundamentals of attainable housing and this strategic partnership will position us to move decisively on a robust pipeline of opportunities that create value for our investors and meaningful impact for the communities we serve."
Eagle said that it plans to leverage its prior experience in forming JVs throughout Southern California under the new partnership. According to the Los Angeles-based firm, it has acquired more than 5,000 multifamily units since its inception and now operates and manages over 1,000 housing units.
RealPage's first-quarter national apartment report showed that the strong absorption of 93,300 units was able to push up occupancy to 94.9 percent. While the West Coast outperformed with a 95.2 percent rate, rents did contract due to elevated supply.
Source: GlobeSt/ALM